WASHINGTON — White House economic adviser Kevin Hassett said Wednesday said he is expecting a “very, very strong” U.S. labor market in the future, and cited credit card spending that is “through the roof” as evidence of the economy’s strength.
Speaking with Fox Business host Maria Bartiromo, Hassett said consumer spending remains robust, citing recent conversations with banking executives and credit card spending data, The Hill reported.
“I had the head of one of the big five banks in my office yesterday going through credit card data … and credit card spending is through the roof,” Hassett told Bartiromo. “They’re spending more on gasoline, but they’re spending more on everything else too.”
Numerous analysts responded to the statement by noting growing credit card debt is not necessarily a good sign, as more consumers are struggling with rising prices and have been forced to put more purchases on credit cards.
‘Very Healthy’
Hassett predicted what he described as a “very healthy, steady jobs picture” through the remainder of the year, he said during the interview.
Consumer spending rose 1.7% in March compared with the prior month, according to a Commerce Department report cited by The Hill. Much of the increase was driven by higher gasoline prices, with spending at gas stations climbing 15.5% from February to March.
The Hill also noted that the conflict involving the U.S. and Iran and the effective closure of the Strait of Hormuz since late February have pushed global energy prices sharply higher. According to AAA data cited by The Hill, the average price for a gallon of regular gasoline in the U.S. exceeded $4.50 on Wednesday, more than $1 higher than the same period a year earlier.
Gasoline prices reached a four-year high at the end of April when average prices hit $4.18 per gallon, The Hill reported.
Fuel Costs Hit Low-Income Households
Meanwhile, a report released Wednesday by the Federal Reserve Bank of New York found that rising fuel costs are disproportionately affecting lower-income households, according to The Hill.
The study found households earning less than $40,000 annually increased gasoline spending less than higher-income groups, suggesting consumers reduced fuel purchases to offset higher costs.
“Higher-income households have reduced real gas consumption only modestly and increased gasoline spending considerably compared with 2023,” Fed researchers wrote in the report cited by The Hill.
“In contrast, lower-income households increased spending by much less and decreased real consumption by much more, potentially by carpooling or substituting to public transit where available.”
